The Offer
- Costco credit card from Citi is offering a signup bonus of $75 after you spend $1,500 (anywhere) within the first three months.
- Valid 10/3 – 10/27/24.
- Offer is valid on the personal and business versions of the card.
Card Details
- No annual fee (but Costco membership is required)
- No foreign transaction fee (after January 25, 2018)
- Card earns at the following rates:
- 4% cash back on eligible gas worldwide, including gas at Costco, for the first $7,000 per year and then 1% thereafter
- 3% cash back on restaurant and eligible travel purchases worldwide
- 2% cash back on all other purchases from Costco and Costco.com
- 1% cash back on all other purchases
Our Verdict
While we don’t usually cover bonuses of less than $100, this is notable on a well-known card that never has any bonus at all.
Hat tip to reader Bockrr
have had this card for 10 years or more. Chatted with Citi, hoping to get them to apply the $75 for $1500 spend deal without me having to cancel and re-apply (agree with other comments that it’s not worth a 5/24 slot). They could not tell me if I would get a refund for the Costco AF or anything else if I closed. They wanted me to chat with Costco, stating that Costco provides the credit. I went up 2 supervisors and they gave me a costco chat link assuring me that it wasn’t a Citi situation. I told them that was wrong, but they insisted.
Same scenario on Costco chat- got a supervisor and they confirmed that I would get a FULL REFUND of my AF if I cancelled at any time, not a pro-rated refund.
Neither addressed the fact that I would almost assuredly NOT get my once a year check for all my costco spending for the year (which certainly is more than $75)
So, with a May renewal date, I don’t see any reason why I would ever do this.
Now the only question becomes am I better off to simply close this card down and use my inks (to meet spend) at costco and pay for my membership on it’s own every year? And maybe canceling it before it renews every year for a refund, which is just plain wrong/not the same as churning IMO.
I’m not trying to get into the discussion of the merits of Costco/Sams/etc becasue Costco is my only
Am I missing anything?
As for the accumulated rewards, I don’t know what happens to those if you cancel the card (or lose it with a Costco membership cancellation).
thx
I’m just gonna leave it alone for now unless I can get the rebate checks anyway- I will ask at the service desk next time
Citi Costco rebate check comes in the February statement while the executive membership rebate check comes about 2 months before renewal date. I just got mine as my membership renewal is 12/1.
Applied for the card last month, within 30 days. Called Costco and Citi and neither one would apply the bonus
I only use this card for 4% cashback at Costco gasoline. Gasoline at Costco is cheaper than anywhere else. I put everything else on my other 5% cashback cards. When I get a EV then this card is useless.
There’s an AAA credit card (availability varies by zip code) that has 5% on gas and EV charging. I have it via conversion of my BofA card but I haven’t bothered to enter it in Tesla app as I supercharge so rarely. Typing this comment probably took the same amount of time as to enter my card details. Damn!
EV charging also gets 4 percent back
and yes. I just realized my comment was not applicable to most EV users. I charge my tesla at home.. but nonetheless, costco added EV charging costs 4% back
I still don’t understand why people would want this card at all. It doesn’t make any sense to me.
For example, BOA Customized Rewards set to online purchases will beat this card left and right:
With a basic BOA checking, 2.2% in store, 3.3% online GC.
With Platinum Honors, 3.5% in store, 5.25% online GC.
All with 0 AF.
I just don’t understand.
Cause .02 isn’t material to anyone, not everyone is a BofA customer, nor wants to be. Quit being a SIMP for bofa
That’s on you. That’s like saying you have something against Chase so you’re not churning Ink cards. Doesn’t change the fact that it’s the best churn out there.
Not everyone has BOA because its basic checking has fees. Also not everyone has Plat Honors
I just checked – all you need is a $250/mo DD to avoid fee. Or another type of account needs only $500 balance to avoid fee. This is a very low bar. But even without a BOA checking account, getting GC online would do 3% instead of 2%.
Screwing around with another checking account, micromanaging it to make sure I get the bonus rate but not lose out on higher returns elsewhere all for 0.2% more interest makes no sense to me- my time is worth way more than that. And buying giftcards is another layer of hassle.
If you find that is a good use of your time I am happy for you but for me and many (most others) that is a hard pass.
You don’t have 100K in stock investments to park at Merrill brokerage? Understandable but that’s about the only excuse there can be for this.
Given the typical Costco customer has a $125k annual income asking them to dedicate 80% of their annual pre-tax income to one brokerage to get a bit more cashback on their Costco purchases makes very litt, if any sense to me,
You don’t need to dedicate 80% every year it’s just one time and keep it there…
This guy gets it. Mike, not so much…lol
I get it very well. It is a one time contribution but it is still a large chunk of change for the typical Costco member.
I did some research and the average Costco customer spends $2622 a year.
(2622*.0022)=$5.77 more using a BOA card with basic checking.
That is definitely not worth the hassle for me or anyone else.
Every 1% additional cashback is worth only $26.22 annually. The scenario of buying gift cards with basic checking to earn $26.22 is at best marginal.
Setting aside $100,000 and fiddling with a second checking account definitely isn’t worth it for the amount of return.
Hard pass.
It really should be a hard pass for anyone that doesn’t already do business with BOA and even then, the return is at best marginal.
I think the point being made is that it equals 80% of their annual income. Not everyone has 100k that they can just park into one place.
Which has zero relevance. Mike should have been comparing it to the liquid investable assets of this cohort which is probably in the mid six figures.
Probably. I make a good buck but we don’t have that kind of non retirement cash to sit in a retail bank making lousy interest. I’d rather use that money to spread around doing bank bonuses or chasing a good interest rate.
On credit cards, outside of hitting SUBs, I maybe spend $500-1k/mo. So for someone like me, an extra 2-3% cash back isn’t going to make or break me on spend. For some, if they’re putting thousand a month on a card, that makes a difference. Everyone’s situation is different.
ME offers decent bonuses (including IRAs, so the non-retirement distinction is irrelevant unless its a 401/403/457), and you only need to keep an average of 100k there for 3 months to get Plat Honors for a whole year. If you’re churning enough SUBs to the point that 5.25% back is meh, congrats and maybe one day I can join you, lol. The amount of DoC interest in 5% quarters makes me think this is not the general case though…
403, nothing I can do about that.
I just don’t need to spend much and most of what I do spend is already covered by high CB categories. 5% on utilities, 3-5% on groceries and 5% on gas. My SUBs are eaten up with estimated taxes and property taxes, that’s good enough for at least 6/yr. The occasional major expense can gain another SUB.
Judging by comments on here over the years, there’s such diverse financial situations. The information has been extremely helpful though there are times some think that their way is the only way. Luckily it’s rare. You’ve been very helpful on the info, thank you for that.
Understood, good luck to you going forward.
You too. Thanks again.
With an annual income of $125k, it will probably take them a few years to have $100,000 in taxable investment accounts and IRAs. It is probably not hard for that income level.
Besides, even with only $50,000 in assets, it will give you Platinum status, equating to 4.5% back on gas and 3% in Costco purchase (in store if you don’t want to get gift cards).
It’s a hard sale for this Citi card, if you are in the know
Dedicating a second checking account and 50k to earn an extra 0.5% back on gas and 1% at Costco doesn’t make a lot of sense.
The average family expense for gas is 5k a year so between the Costco and gas that is $50 a year for all that effort, hassle and opportunity cost.
Hard pass on BOA.
Again, nobody is putting 50k or 100k into a checking account to get platinum honors. But we get it, you have an allergic reaction to BoA for some reason, which is fine as long as you have all the facts. Still not sure on that last part…
The money doesn’t even need to stay with Merrill/BoA. After you earn PH status (with a ME bonus of course) you can just move it away. They do balance status checks once a year at anniversary.
Also true, but I don’t think anyone here cares, lol
I don’t have an allergy to BOA.
I just know that $50 more a year is not worth the trouble of setting up a whole new relationship with another financial institution.
I get a way better return by squeezing more out of my current relationships
Heck, I save that much a month by changing my driving habits.
If you think that $50 a year is worth the trouble on an hourly basis compared to other activities that is your opinion, I just disagree with that opinion.
I certainly agree with you that BOA gives you $50 more a year.
I am just saying the $50 a year isn’t worth the trouble.
I hope that is clear now.
You don’t have to “dedicate” to a checking account.
You can leave the checking account open and leave even $1 in it. You don’t ever need to use the account. There are no fees associated with the account if you have $50k in Merrill.
If you have $50k in assets (stocks/bonds), it doesn’t matter where you hold them. You still earn the same capital gains/dividends regardless of who the brokerage is. There is no loss in market opportunity.
If one doesn’t have $50k in assets, then I understand the criticism. However, I do not understand the argument regarding “opportunity cost.” A share of stock is the same whether you hold it in John Smith Brokerage or in Merrill
Opportunity cost is a variety of things: have specific assets that can not be transferred but need to be liquidated and having the cash transferred. I had that with my Roth.
It can also be not being able to take advantage of transfer bonuses. $50,000 at the 3% is $1500. That is way more than the $50 more a year you get from BOA.
You can transfer out the $50,000 once you get the platinum status. Your status will maintain for 1 year. Then you just need to transfer back in the money with the new bonus.
I am curious to what you are holding in your Roth that cannot be transferred. Merrill can hold all ETFs and many mutual funds (even if you cannot buy said mutual fund in Merrill)
cut my grocery spending from $100/week to $60/week by going to Sam’s/Kroger. The greedinflation for Costco is real. 20 years loyal member just cancelled the membership. If you like to throw away good money and line the GreedCo executives, good for you.
10 apples is $11.99 at GreedCo, you can get it at Sam’s for less than $7.
Chicken breast is $2.99/lb, it is $1.79/lb at the butcher station at my local Kroger and it is fresher.
99% of the grocery items you are better off at Walmart/Kroger.
For household items (toothpaste, laundry detergent, swiffer refills, etc), you are better off at Amazon, and they delivered to my door for free with subscribe and save!
I regularly get ~10 gala apples at Costco for $4-$6 depending of the location. I think your costco maybe located in Alaska or Hawaii if they are charging you that much.
i should have taken a picture at GreedCo..GreedCo sells gala apples at $2.06/lb, Walmart has it for $1.23/lb.
Snd people are going to say the warehouse price is cheaper. No, it’s not cheaper than Walmart at the warehouse. Greedco’s price is still 30% to 50% more expensive even at the warehouse.
If you like to line the executives’ pockets, kudos to you!
Not sure why my last comment didn’t show up. But Greedco gala apples is $2.06/lb and walmart is $1.22/lb
Well not at my Costco. And as always not everything is always cheap at Costco. And Costco membership offers a lot more than just apples and bananas. Costco travel offers solid deals for car rentals or vacation packages.
And mostly importantly Walmart does not have $1.5 hotdogs+soda or $1.99 pizza.
You don’t need membership for costco food court atleast at my location. I agree that Costco has bumped up their prices for many products or other places somehow figured to lower them than costco. Its a hit or miss at costco for cheaper groceries for the past few years.
Gala apples are 1.663 a pound at Costco. Your price at Walmart is a sale price.
Honeycrisp are 1.748 a pound at Costco, $1.71 at Walmart.
5 dozen cage free eggs, 13.99 at Costco, $4.78 a dozen at Walmart.
Apple cider, $5.39 at Costco, $6.58 at Walmart.
Fresh mozzarella $7.99 for 36 ounces, over two pounds. A measly one pound package at Walmart is $7.97, well over two the price!!!
I don’t to need to go on.
wait..are you proving walmart is cheaper?
Fresh mozzarella $8.28 at Sams. I don’t know where you find $7.99 Fresh mozzarella from GreedCo, it has been $9.99 since last year. I have my receipt as proof. too bad DoC won’t let me upload link.
I paid 7.99 for Kirkland Signature Fresh Mozzarella, 18 oz, 2-count last week at Costco.
The only place in that list
Mike said was cheaper at Walmart is the Honeycrisp apples at 3¢ less per pound.
You could post your receipt online anywhere and include the link in your comment. That again indicates that you have no proof.
Everything I listed except the apples at 3 cents more a pound was less expensive at Costco, as noted below.
I should include a food related items on the list.
Snapware 38 piece set, $20 at Costco, a whopping $37 at Walmart.
Same here. $5.99 at my location.
You may need to pick and choose what you get a Costco. Produce at Costco is usually the least expensive unless there is a sale at the local grocery store. If you buy organic, Costco has very good prices.
does your Costco actually weight those or guarantee the gross weight? when I weight the items myself, Walmart is usually above and around the printed gross weight on the package but Costco is always less than the advertised weight. so I ended up getting rip off by Costco a lot
for fruits, Chinese/Asian supermarkets are way better on both price and quality
Agree on all points except Amazon. I doubt Amazon is cheaper for anything.
…. No tks 😹
Hitting 6% catch-all with the SUB elevates its ranking from “waste of a HP” to “the last card you should ever bother getting”, which is something.
Best to get a higher SUB then product switch into this. I did Citi premier to costco after year 1.
I didnt think you can PC to or from this card.
Use fav Visa card to buy at store and return to citi visa. Citi is losing big money here.
Not worth it unless they throw in a free 2-liter of pop like my local Costco was offering a few months ago.